Give a new idea to friends who are doing foreign trade

In fact, this idea is not very new. It is to use an overseas company to carry out your foreign trade operations. Many people may already understand and even use this mode of operation. Now I will summarize the process and advantages of this mode of operation for everyone, of course, this is just a statement, for reference only.

Foreign exchange

(1) Registered overseas companies can open overseas accounts and domestic offshore foreign exchange accounts. It can facilitate foreign exchange transactions and avoid foreign exchange losses, and will not be subject to import and export agency companies in terms of funds;

(2) At the time of import, sometimes the proportion of domestic foreign exchange storage is insufficient, and foreign exchange is required. If the export collects foreign exchange through overseas companies, there will be a certain proportion of foreign exchange reserves, which will solve some of the problems of foreign exchange purchase;

(3) There are foreign exchange controls in the country, and some funds will be retained abroad, which will have a lot of convenience for future investment projects or fund transfer. Because foreign funds have no foreign exchange controls, they can freely transfer funds to domestic or foreign individuals or corporate foreign exchange accounts.

Tax

(1) Tax incentives are also available for business operations through overseas companies because of the low tax rate and low taxes. Even some regions do not levy overseas profits tax (such as HK, BVI, SAMOA, UK, USA...), the so-called profits tax is the net profit generated by local operations;

(2) Import operation mode: domestic foreign trade companies open letters of credit or T/T to overseas company accounts, overseas companies re-T/T or L/C to foreign exporters, of course T/T or L/C to overseas company accounts The funds can be freely allocated within a reasonable range, that is, greater or smaller than the original import amount, so that the corresponding tariff or income tax will be reduced;

(3) Export operation mode: use overseas companies to sell to domestic customers after purchasing goods from China. The overseas customer remits the money to the account of the overseas company, and then returns the cost to the account of the domestic company or foreign trade company (does not affect the tax refund), so that the profit of the product has been retained in the account of the overseas company, and the profit will not be settled. There is also no need to pay any taxes.

Safety

(1) Customers who do not have import and export rights have also increased their own security through the foreign exchange accounts of overseas companies, so as to avoid direct contact between import and export companies and overseas customers without their own living space. In addition, you can also avoid import and export agents to understand their own profits.

(2) Using overseas companies to conduct business can avoid some risks for domestic factories or foreign trade companies. Many international traders use overseas companies (such as HK, BVI, SAMOA, UK...) to reduce corporate risks.

investment

(1) Using overseas companies to return to China for investment projects, establishing Sino-foreign joint ventures/foreign-owned enterprises, domestic offices, etc., can fully enjoy domestic preferential policies and improve their competitive strength.

(2) Use overseas companies to cooperate with domestic companies (such as authorized manufacturing / design / operation / use of brands, etc.) to enhance product quality and build an international brand.

Company image

(1) Registering overseas companies, creating a corporate overseas background, enhancing product image and enhancing customer trust

(2) To explore the international market prospects, registering overseas companies is an inevitable choice.

other

The above is the advantage that foreign trade friends can take advantage of the operation of overseas companies. In fact, there are many advantages in registering an overseas company. For example, using its limited liability to purchase properties and automobiles can reduce risks. If you use its name, you can apply for an international trademark and do your own OEM; use its confidentiality to go public. Use its internationalization to bypass switching tax barriers and export quota restrictions.

Export process

For example, your customer is a US customer A, you have been exporting goods through foreign trade company B. The current operation is to use the overseas company you registered (assuming a Hong Kong company) to purchase goods from domestic companies first, that is, the domestic company exports the goods to your own Hong Kong company through the foreign trade company B, and then sells it to the Hong Kong company. US customer A. Here, the Hong Kong company plays a role in entrepot trade, but domestic goods can still be sent directly to the United States. The US company pays the purchase price to your Hong Kong company's account according to the contract (the account can be opened in China, called offshore account), and the Hong Kong company pays the cost and other expenses to the foreign trade company B (let the foreign trade company do it) Follow-up matters such as tax refund verification.) In this way, your profit has been retained in the offshore account, the profit will not be settled, you can control it at will in foreign exchange; the profit does not need to pay any tax, because Hong Kong does not levy overseas profits. Tax. When you need to use this money, you can go directly to your domestic company account or your personal foreign currency account. The advantage of this operation is that foreign trade company B also does not reach your US customer A.

In the actual operation process, it is recommended to use the transferable letter of credit operation. For example, an overseas customer will open a letter of credit of 1 million US dollars to the Hong Kong company, and then the Hong Kong company will transfer a letter of credit of 800,000 US dollars to the domestic factory. Preferably, the letter of credit indicates that the third party document is accepted, so that the subsequent documents are not in conformity. If it is a back-to-back letter of credit, you need your Hong Kong company to have a corresponding foreign exchange mortgage. Because your Hong Kong company is an offshore company, it is not applicable to the credit line, so it is very difficult to operate.

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